Which of the Following Statements Is True

question 40

Multiple Choice

Which of the following statements is true?

• A) Long-term bonds tend to pay less interest than short-term bonds.
• B) Government bonds pay less interest than comparable corporate bonds.
• C) Investment funds are riskier than single stock purchases because the performance of so many different firms can affect the return of a mutual fund.
• D) A stock index is a directory used to locate information about selected stocks.

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Definitions:

Legal Systems

Comprehensive frameworks of laws, regulations, institutions, and procedures that guide the administration of justice in a country or region.

States

Politically defined regions or territories that make up a country, each with its own government and administrative powers within the context of a federal system.

Multilateral Free Trade Agreement

An agreement between three or more countries to reduce trade barriers and tariffs to encourage trade and economic cooperation among them.

Tariffs

Taxes imposed on imported goods, typically to protect domestic industries or to raise government revenue.